NBA players are shifting their ongoing labor dispute with the league's owners toward the courts — the courts with lawyers and judges, not the ones with coaches and referees.

The move seriously threatens the 2012 NBA All-Star Game, which is scheduled to be played in late February at Orlando's Amway Center, and jeopardizes the 2011-12 season.

On Monday, the players rejected the owners' latest proposal. The players' union also filed a notice of disclaimer, a statement that says the union no longer represents the players in collective-bargaining talks. The filing will enable the players to submit an antitrust lawsuit against the league.

"We have negotiated in good faith for over two years and we've done everything anybody could reasonably expect of us, particularly when you look at the number of givebacks and concessions," said Billy Hunter, the union's executive director.

"But the players just felt that they've given enough, that the NBA was not willing — or prepared — to continue to negotiate. Things were not going to get better."

NBA Commissioner David Stern, speaking on ESPN, said the owners would not improve their most recent offer and predicted that the league was headed for a "nuclear winter."

Gabriel Feldman, who directs the Sports Law Program at Tulane Law School, said the players' decision doesn't mean necessarily that the entire season will be canceled. But it does mean that a season almost certainly will start later.

"I think a much more shortened season is an inevitability at this point," Feldman said. "But the litigation process could take place quickly enough to allow the players and the owners to determine how much leverage they have."

The longer it takes to begin the season, the less likely it is that the NBA holds the 2012 All-Star Game, which is scheduled for Feb. 26. League officials have said the exhibition could generate as much as $100 million in economic impact for Central Florida.

If the exhibition is canceled, Orlando instead would host it in 2014.

The region already has felt the effects of the lockout, which completed its 137th day on Monday.

About 1,000 people — ushers, security guards, ticket-takers, vendors and cooks — work inside Amway Center each game night. Businesses near the arena also depend on the foot traffic the games create.

"I just wish the players and the owners would take greater consideration of the small businesses that depend on the NBA season," Orlando Mayor Buddy Dyer said.

Dyer added: "I would say to the players and the owners, 'Take a deep breath, get back at it and let's get this resolved.' "

Team player representatives, including the Magic's Chris Duhon, met with union officials in Manhattan on Monday.

Duhon said the majority of Magic players ultimately decided against accepting the owners' proposal, which called for a 50-50 split of basketball-related income. If accepted, the offer would've allowed the league to begin a 72-game season on Dec. 15 and would've saved the 2012 All-Star Game.

A canceled season could mean that superstar center Dwight Howard already has played his final game for the Magic. Howard can terminate his current contract one year early and become a free agent on July 1, 2012.

"There will ultimately be a new collective bargaining agreement, but the 2011-12 season is now in jeopardy," Stern said in a statement.

Mark Schlueb of the Sentinel staff contributed to this report. jbrobbins@tribune.com. Read his blog at OrlandoSentinel.com/magicblog. Subscribe to our Orlando Magic newsletter at OrlandoSentinel.com/joinus.